Assessment of Financial Performance: A Case of some Financial Institutions in Ghana

Abstract

The purpose of the study was to assess the financial performance of some financial institutions in Ghana. Return on Assets (ROA) and Return on Equity (ROE) ratios for measuring the financial performance were calculated from secondary data obtained from 15 FIs. The findings of the study revealed that few FIs performed well and made some gains (ROA ratios≥ 5) in respect to their assets indicating higher net profits ≥5 pesewas per every cedi invested while the rest majority, could not make much profits as far as the usage of assets were concerned. Also, most of the FIs had ROEs>0.20 that is >20 pesewas per every cedi invested indicating good returns and higher net profits in terms of shareholders investment